Platts on the oil price impact of the Saudi attack

Attacks increases concerns on about supply security in the Middle East

Oil price risk premium should heighten

sudden change in geopolitical risk warrants elimination of the $5-10 a barrel discount on bearish sentiment and also adds potential $5-10 a barrel premium to account for threats to supply, sudden elimination of spare capacity

prices are likely to break out of the current $55-65 a barrel options range

test high $70s

could move higher still if Saudi output is curtailed for a more substantial period

—-

Note, exports from Saudi are expected to remain around normal levels this week as inventory is drawn upon. Evidence of prolonged curtailment of supply due to damage to production facilities is what to watch for.